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The 0.1% is >$25M in wealth. You can live off $1M (after taxes) indefinitely, and still have an inflation-adjusted $25M nest-egg to pass on to someone else aft

The 0.1% is >$25M in wealth. You can live off $1M (after taxes) indefinitely, and still have an inflation-adjusted $25M nest-egg to pass on to someone else after you die. The idea that you can't live a lavish life on $1M in spending - even in Manhattan - is absurd. $1M could get you a $50k per month apartment in Manhattan plus leave you almost $1500 per day in spending. There's almost no one on this forum spending that kind of money, and many of us have VERY nice lives. A lot of people in the 0.1% still work - but they definitely do not need to. You can be a part of the yacht class with $25M. I mean, you're not going to have your own - but you can afford to rent one regularly... You can fly private, etc. There's an enormous difference between someone in the 0.1% and someone in the 1% - namely that you have 0 reason to work, and you can afford a staff to do everything for you... For probably >75% of the 5%-1% - there isn't that much difference between you and someone average beside you have a nicer car, a nicer house, you eat out more often, go on nicer vacations, and pay a LOT more taxes...

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Retric 4y ago
Edit: My point was mostly that top 70th percentile or a little over 300k isn’t US retirement money but it is third world retirement money. It’s the bottom threshold for unlimited food and shelter being guaranteed as long as you keep expenses low enough. Meanwhile the bottom 1/3 is basically trusting on borrowing for their capital, they simply need to work. A pension is just another form of wealth. As to 0.1% vs 0.01% I am mostly talking about staff. You can own and operate a boat at relatively low wealth. The UK famously has a lot of people living cheaply on narrow boats but there are US equivalents. The 0.1% wealth level owns a much nicer boat while the 0.01% owns a boat with it’s own staff. That’s the tipping point IMO. People of most income levels can go to the beach it’s mostly nicer versions of the same basic thing. From living in a tent to a large mansion you’re cooking lunch or eating out until suddenly the option for a private chef becomes normal.

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Retric 4y ago

Edit: My point was mostly that top 70th percentile or a little over 300k isn’t US retirement money but it is third world retirement money. It’s the bottom threshold for unlimited food and shelter being guaranteed as long as you keep expenses low enough. Meanwhile the bottom 1/3 is basically trusting on borrowing for their capital, they simply need to work. A pension is just another form of wealth. As to 0.1% vs 0.01% I am mostly talking about staff. You can own and operate a boat at relatively low wealth. The UK famously has a lot of people living cheaply on narrow boats but there are US equivalents. The 0.1% wealth level owns a much nicer boat while the 0.01% owns a boat with it’s own staff. That’s the tipping point IMO. People of most income levels can go to the beach it’s mostly nicer versions of the same basic thing. From living in a tent to a large mansion you’re cooking lunch or eating out until suddenly the option for a private chef becomes normal.